A Quick Look at The Greenbrier Companies

With shares of The Greenbrier Companies (NYSE:GBX) trading at around $15.64, is The Greenbrier Companies an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Whenever Carl Icahn’s name is mentioned, there is drama. Investors will be taken on a wild ride rollercoaster ride that features incredible expectations and steep disappointment. Where that rollercoaster ride ends is a mystery. In this case, Mr. Icahn was rejected. This is a man who doesn’t like being rejected, let alone twice. Therefore, if you’re hoping for an acquisition in the near future, it’s not likely to happen. Mr. Icahn has to advertise. In other words, future dealmakers need to know that he won’t hesitate to walk away from a deal if he doesn’t get what he wants.

If you’re not familiar with the situation, American Railroad Industries (NASDAQ:ARII) teamed up with Carl Icahn so American Railroad Industries and The Greenbrier Companies could merge. An offer of $22 per share was made to The Greenbrier Companies, but that offer was rejected. This was the second offer made. If the deal had gone through, it would have created the largest United States railcar producer. However, that’s not how it played out.

Since there is no deal, let’s take a look at some important numbers for The Greenbrier Companies as a standalone operation.